Colt was re-invented after, in 1845, U.S. Dragoon and Texas Ranger units attributed successes in their battles against Native Americans to the efficacy of their Colt firearms. In 1846, Captain Samuel H. Walker of the U.S. Army and Samuel Colt collaborated to produce an upgraded version of the original Colt revolver for use in the Mexican-American War. Briefly thereafter, the government ordered a thousand of the new revolvers, thereby putting Colt back in business. Stuck without a factory after the closing of the Paterson facility, Colt contracted with Eli Whitney Jr., son of the cotton gin inventor, and completed the order mid-1847.

By 1856, Colt had become a world-recognized manufacturer of firearms, reputed for its high quality, workmanship, and reliability. By that time, Samuel Colt had become one of the ten richest businessmen in America. Colt show guns and presentation pieces were renowned for their beauty: Samuel Colt had always had a flair for design and detail.

Samuel Colt is also noted for being one of the first individuals to realize the full value of marketing. His success was such that, at his death, his estate was worth some fifteen million, approximately equivalent to three-hundred million today.

In 1864, the Colt factory in Hartford burned down, suspending most production for some three years. In 1867, the factory was rebuilt to be far more fireproof, and Colt resumed production. That same year, they first began manufacturing and selling Dr. R. J. Gatling's machine gun, the first gatling gun ever made, and the precursor to modern miniguns.

As the company entered the mid-20th century, it began to face troubles. For years, it had started to become more and more dependent on government orders to make ends meet. The presence or absence of a war could make the difference in yearly profits: in 1942, as World War II was entering its height, Colt was so well-emplaced that it could greatly diversify its production lines. Conversely, as the war closed, Colt began to falter. When the Korean War began, government orders again spiked, bringing profits: yet, as it ended, the company's last legs finally gave out.

In 1960, Colt revolutionized its business with the introduction of the AR-15 rifle, followed by the M-16. The Vietnam War also greatly increased the number of orders Colt was receiving, bringing their profits back up.

In 1964, the parent company changed its name to Colt Industries, and Colt's Patent Fire Arms Manufacturing Company became Colt's Incorporated, Firearms Division. Its business began to extend further into the civilian field, expanding its commemorative products, including historical blackpowder rifles.

In 1984, Colt suffered a blow as the venerable yet beloved M1911A1 was replaced for general military use by the BerrettaM9. In 1988, Colt lost the government contract for M-16 rifles. These two strikes would prove a mortal blow for the beleaguered manufacturer: in 1990, Colt was sold to a coalition of private investors, the State of Connecticut, and Union employees. The company was renamed Colt's Manufacturing Company, Incorporated.

In 1994, the Hartford Armory was closed and all production was finally moved to the West Hartford factory. Colt also received a contract for 19,000 M-4 Carbines to be supplied to the Army and Special Forces. September of that year, a new set of investors purchased the company, and Colt staggered its way out of bankruptcy once more.

1997 turned out to be a major year for Colt. A new government contract for 6,000 M-4 Carbines was offered and accepted, and the contract for procurement of the M-16 rifle was returned. Additionally, the Air Force contracted for the upgrading of some 88,000 M-16A1 rifles to the A2 variant. Finally, Colt acquired Saco Defense, a Marine corporation specializing in automatic rifles for military use.

The 21st century finds Colt poised for future success. Holding exclusive contracts for the procurement of M-4 Carbines until 2010, as well as a backlog of government orders amounting to approximately 59,000 units, its financial security is all but assured. Colt firearms are trusted and valued around the world, and its commemorative editions are selling strongly throughout the United States.

Despite Colt's rocky past, its present is good and its future looks bright. The M-16 rifle is not due to be replaced for years, and its civilian and law enforcementdivisions are showing more success than ever before. Indeed, Colt is one American corporation than truly epitomizes the indomitable spirit of American industry.